Customer Due Diligence and Its Role To Prevent The Global Economic Threat: Indonesian Anti Money Laundering Perspectives

Money laundering and financing of terrorism is one of the global threats which may occur problems for the economics of the world. The effect of Money Laundering and financing of terrorism have been manifested in the life of the nations. According to its characteristic as a transnational crime, Money laundering and financing of terrorism have been a major concern of all the countries and law enforcement agents. In this situation, law shall be a major instrument to tackle money laundering and financing of terrorism, but Customer Due Diligence and Enhance Due Diligence plays a great part to prevent money laundering and other variant of crime. The effective and efficient measure to recognize the customer who has a suspicious character of money laundering and financing of terrorism is using the method of knowing correctly and precisely their customer’s profile. Customer Due Diligence is the first resort which may operate as the first procedure which should be taken by all Financial Services Provider and also Goods and Services Providers. As a tool, Customer Due Diligence should be followed by the professionalism and awareness of the parties involved, such as bank and goods and service providers, since it is not easy to recognize the money laundering and also financing of terrorism. The presence of Law Number 8 of 2010 of Republic of Indonesia actually tries to strengthen the implementation of the Principle of Know Your Services Users or also known as the Know Your Customer Principle

Cash Courier In Money Laundering: Crime Opportunity Approach

This paper follows a normative research methodology of law, and will combine through a collaboration with business economic approach in the analyze process in order to expose the opportunity of conducting money laundering through cash courier. The proper detection mechanism of cash courier will plays an important role to prevent money laundering. There are two mechanisms that use in cash courier, declaration system and disclosure system. In some countries, which are using custom declaration as its mechanism will lie on the honesty of person. The mechanism of treating cash courier in money laundering and considering whether it is an administrative violation, or a criminal violation, or a civil violation will be important to be criticized. It should be reconsidered that cash courier in money laundering is a crime, thus should not put it as merely an administrative scope of violation. The administrative sanction would not be proper to handle it. The problem of cash courier would not be a simple problem to be solved. It needs ideal concept and framework to be constructed which is based on objective methods for what law can do to handle, and further will assist to prevent and eradicate money laundering. This qualitative research paper that follows content analysis method provides better insight into cash courier in money laundering and the role to be ensured in detecting mechanisms

Telaah Atas Eksistensi Lembaga Pengawas dan Pengatur Menurut UU Pencegahan dan Pemberantasan Tindak Pidana Pencucian Uangm UU Bank Indonesia, dan UU Otoritas Jasa Keuangan

Tindak Pidana pencucian uang atau Money Laundering pada hakikatnya merupakan suatu kegiatan yang tidak hanya mengancam suatu negara tertentu saja, tetapi sudah meluas menjadi ancaman serius bagi seluruh bangsa. Indonesia melalui berbagai peraturan perundang-undangan menunjukkan komitmen untuk serius di dalam mencegah dan memberantas tindak pidana pencucian uang. Hal ini dilakukan dengan melakukan perubahan atas Undang Undang Nomor 25 Tahun 2003 tentang Perubahan atas Undang Undang Nomor 15 Tahun 2002 tentang Tindak Pidana Pencucian Uang, menjadi Undang Undang Nomor 8 Tahun 2010 tentang Pencegahan dan Pemberantasan Tindak Pidana Pencucian Uang (yang selanjutnya disebut dengan UU PPTPPU). Pasal 1 angka 17 UU PPTPPU mengatur bahwa yang dimaksud dengan Lembaga Pengawas dan Pengatur adalah lembaga yang memiliki pengawasan, pengaturan, dan/atau pengenaan sanksi kepada Pihak Pelapor. Bagi sektor Perbankan, berdasarkan UU Bank Indonesia, maka yang ditetapkan sebagai LPP adalah Bank Indonesia. Dalam perkembangannya berdasarkan UU Otoritas Jasa Keuangan, kewenangan Bank Indonesia sebagai pengawas perbankan beralih kepada Otoritas Jasa Keuangan. Eksistensi Lembaga Pengawas dan Pengatur sebagaimana dimaksud di dalam UU Nomor 8 Tahun 2010 sebenarnya memerlukan deskripsi kewenangan, batasan persinggungan tanggungjawab dan bentuk koordinasi lembaga terkait dengan PPATK

Best principles for criminal assets management: Conceptual framework

This paper follows a normative research methodology of law, and will make collaboration with economic approach to build a proper concept for good criminal assets management, and good management principle implementation in order to regain the revenue of state financial losses through a dialogue between law and economic approaches.As it understood, transnational crime is one of the most vital crimes involving any kind of money and property as proceeds of crime.It is adapting things to fit their illegal activities. Corruption and Money Laundering as transnational crime are like two faces of coin. Pursuing proceeds of crime is the effective method in order to cut the crimes. To cut corruption, it can use anti money laundering mechanism.The problem of asset forfeiture is not as simply as designed in the theory.The existence of criminal punishment and forfeiture regime could be very problematic. When criminal assets should be forfeited, the domestic law meets difficulties especially when forfeited assets are in foreign jurisdiction.Thus it needs any proper and right mechanism of asset recovery and asset management in order to recover state financials loss. Maintaining the asset require special institution, good management and cooperation principles to implement it

What can IT and Money Laundering Law do to Fight against Cyber Child Sexual Crime?

This paper will assess on how technology and anti-money laundering law perspectives can contribute in tackling cyber child sexual crimes. It is normally and classically problem that always emerge in the discussion of law and information technology (IT) is about the increases of crime. But the abnormal and modern problem is about the modernism of crimes with the high-quality level of crime itself. Cyber sexual crime became one of the highest online crimes which conduct through internet. Grooming, voyeurism, cyberstalking, child pornography happens very often in the world. This paper is using normative research methodology of law, by using statute and conceptual approach. The conceptual approach is using to build an ideal concept of prevention and eradication of the crime of online child sexual abuse. This paper is discussed through a qualitative research. The result of this paper is that Information Technology gives contribution in order to present a way out to tackle this problem, for example by giving solution on its surveillance. Other is from the perspectives of law. Money Laundering can assist in tackling online sexual crime toward children, for perpetrator and/or facilitator and/or pther third party who enjoy the illegal gain of this crime

When Technology Meets Money Laundering, What Should Law Do? New Products And Payment Systems And Cross Border Courier

Money Laundering has become very sophisticated by technology assistance. Perpetrator is tending to use the help of technology to create easiness of doing crime. This condition is supported also by the activity of cash courier across border which has been choosing as means to do money laundering. Some Conventions and/or multilateral agreement between countries have appointed the vulnerability of exploration of money laundering through cash courier. From research, it can be understood, the Convention just gives the guideline how to detect, but as long as it happens, there is no specific measurement how to recognize it directly. Since money laundering is proceed of crime. It needs an inspection and evaluation from the Authority and decides that the crime is money laundering. It is not a crime against Customs Law. Other condition that increases possibility to support money laundering is the development of new products and payment systems. So many innovation conducted by technology creates new payments methods and products, such as bitcoin, litecoin, linden dollars, other crypto currency and other bearer negotiable instruments, could help offender to do money laundering. In the research, it was discovered that the crime is developing further rather than the law. Technology seems like taking place in the heart of the money launderer and robs the position of the law, even though Technology is never created for something bad. The research is a qualitative research that will analyze how the law can work together with technology to fight against money laundering. The hypothesis of this research is that law is having a good position as guidance of the development of technology, and technology is having good role to trigger the readiness of law to develop. Thus money laundering will not be easy to “develop” when technology meet law. The government of every country in the world need to synergies information on new technological discovery this is very important as it will help each country to formulate laws bordering on trans-border crime especially on money laundering. Money laundering comes in different formats and styles with the introduction of different payment system across the world. One of such latest development is the introduction of crypto-currency i.e. bitcoin a fiat currency that is mainly a block chain technology driven

Disclosure Of Data Related To Money Laundering Investigation From Data Protection Perspective

The issue of personal data and its protection is important to be discussed. Data protection has been put as the main mechanism that should be ensured regarding with the using of technology that require data collection, data storage, and data access in all real and virtual activities. More of that, the uses digital signature, digital contract, or any acceptance and verification methods in the activities related to technology uses are need to ensure data protection. The law shall be governed to give the protection in that matter. But the cyber attack appears as serious threat in the context of data protection. All parties who collect data must be respect the disclosure of data and the use of data. Another important criminal cases investigation process and law enforcement that needs data disclosure is money laundering. Money laundering deals with transaction of illicit money, underlying transaction, illicit funds transfer, and other forms of transaction that describe money laundering movement. In case of criminal cases investigation, it is definitely important to the officer to access data to illicit money stored, movement, or transferred that have been conducted by offender. Investigator needs to access data of offender that using financial provider’s service to hide, or to disguise money. This working paper is using qualitative research method that study and analyze the disclosure of data in anti money laundering regime but will be analyzed from data protection regulation perspective. As the result, data protection shall be allowing to be disclosed for money laundering investigation process since money laundering cases is an intelligence investigation. The responsible law agencies and reporting parties shall be handle with very careful and not expose the data beyond the needed. In practice, this paper will give knowledge why does the disclosure of data will remain important for the investigation process of money laundering cases in practice

Lex Silencio Positivo To Accelerate E-Government Implementation And To Reduce Corruption

Corruption has been transformed into a difficult, systemic, and sophisticated problem over time. The law enforcement in corruption is not only dealing with the substance of the laws on anti-corruption but also with the system, especially how the development of the core of corruption exists in a “grey area” between a criminal and administrative system of law. The decision of public officials both in the meaning of “beleid” and “discretion” can be contradictive under the regime of criminal law in the context of “excuses”. Regarding the issue of the tackling of corruption and the uses of high technology, the Indonesian Government has released a package of regulations that encourages the utilization of technology to implement good governance then accelerate the effort of speeds up the fight against corruption. The Indonesian Government emphasizes the acceleration of bureaucracy reform as well to build a strong and good government system that is clean and free of corruption in every field, such as permitting, procurement, etc. The Indonesian Law on Administration can be synchronized with other regulations to accelerate the implementation of e-government as well as an effort to reduce corruption. Lex Silencio Positivo through a fictitious acceptance has put a burden on the Government to give a decision based on the request of the applicant that needs the decision of the Government Agencies after a certain time limit. Consistently implementing Lex Silencio Positivo will accelerate the implementation of e-Government. When the Authority did not issue the decision or action, the applicant did not need to sue to court. In this matter, this process will limit the interaction between applicants and administrative authority that may cause corruption practice. This paper will discuss the effectiveness of Lex Silencio Positivo as ordered in the law on the administration to reduce corruption